Tuesday, July 23, 2013

EIA electricity reporting appears contradictory

The U.S. Energy Information Administration (EIA) posted a couple of things today that aren't contradictory, but appear to be.

Wholesale electricity prices rose across the United States | EIA

Image from source article
Average on-peak, day-ahead wholesale electricity prices rose in every region of the Lower 48 states in first-half 2013 compared to first-half 2012. The most important factor was the rise in the price of natural gas (the marginal fuel for generation in much of the nation) in 2013 compared to 10-year lows in April 2012. 
However, the increase in power prices was not uniform across electric markets as regional natural gas supply issues drove larger increases in the Northeast and Pacific Northwest.
Prices in New England were the highest in the nation mostly because of pipeline constraints that limited the delivery of natural gas. This factor drove electricity prices in New England and New York above $200 per megawatthour (MWh) for several days this winter.... continue reading at EIA site
However, the price paid for delivered power doesn't change proportionally with market rates.

The year-to-date average retail pricing data, as of the end of May, was also just released from the EIA, and it shows only a 1.6% in pricing over the past year (and only 1.1% in New England).  That figure is total distributor revenue divided by the total billed consumption.  Much of the electricity purchased is done so on contract (not through a market), and much of the electricity bill is not for the electricity commodity.

Comparable data is not available for Ontario, but using monthly reports for May 2013 and May 2012, the wholesale rate (HOEP) was up 43%, the cost of electricity up 12% (HOEP plus class B global adjustment) and the total of market electricty charges up over 9%.

No comments:

Post a Comment